Evolving Collision Repair Market

Impact of Collision Avoidance Systems CCC estimates technology will reduce accident frequency per mile driven by ~30% in next 25-30 years (based on 2010 baseline) As per industry studies, decline should be somewhat offset by increases in average cost of repair (increased expense of technology) and vehicle miles driven Large operators could also mitigate market decline by continued market share gains in consolidating industry Impact of Crash Avoidance on Vehicle Claim Counts * CY 2050 CY 2045 CY 2040 CY 2035 CY 2030 CY 2025 CY 2020 Crash Course 2020 CY 2015 CY 2014 CY 2013 CY 2012 CY 2011 CY 2010 -15% -10% -5% 0% Crash Course 2019 -35% -30% -25% -20% All Rights Reserved Copyright 2020 CCC Information Services Inc. THE GROUP Boyd Source: CCC Information Services Inc. Crash Course 2020. Updated projection expands the ADAS technology to include systems like lane departure warning, adaptive headlights, and blind spot monitoring, uses IIHS/HLDI's predictions in regard to the ramp-up in percent of registered vehicle fleet equipped with each system, and includes projections of the number of vehicles in operation in the U.S. Projections based on current projected annual rate of change - impact may increase with changes in market adoption and system improvements 14

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